§ It is convenient next to deal with the revenue duties.
§ In accordance with the arrangements for joining the E.E.C., protective duties charged on imports from the other member countries will be progressively reduced and finally abolished. The relatively small protective elements in 270 the customs revenue duties will therefore be reduced by one-fifth in respect of imports from the E.E.C. in accordance with the timetable set out in the Treaty of Accession. The Treasury will be empowered by order to make the further adjustments to these duties required by the Treaty, beginning on the 1st January 1974.
§ Next I deal with the question of those goods liable to revenue duties which from 1st April will also be chargeable with VAT at the standard rate. They are alcoholic liquor, tobacco, matches and mechanical lighters. The basic rates of these duties will be abated by such amounts as are necessary to secure from the goods concerned broadly the same total revenue—that is from revenue duty and VAT combined—in 1973–74 as would have been obtained solely from the existing rates of revenue duty.
§ It follows from the decision to abate the revenue duties fully to offset the introduction of VAT that stocks which are held by registered VAT traders, and which have paid duty at the higher rates, will qualify for relief, to the extent of the abatement, under the stock rebate scheme which has already been announced, and to which I turn next.